Equity Indexed Life Insurance: What You Need to Know

Shawn Plummer

CEO, The Annuity Expert

Equity Indexed Life Insurance is a relatively new type of life insurance that has been growing in popularity in recent years. If you are considering purchasing this type of policy, there are some things you need to know before making a decision. In this guide, we will discuss the basics of Equity Indexed Life Insurance policies and what you need to consider before buying one.

What Is An Equity Indexed Life Insurance Policy?

Some companies offer life insurance policies with face amounts that are linked to an equity index, for example, the S&P 500. Additional premiums must be charged for the increased amount of protection, and it may be obtained in one of two ways:

  • When coverage is increased, the insurance company may merely raise the premium; it has no obligation to further decrease the premium.
  • It’s possible that the insurer will make assumptions about future inflation and charge a higher premium from the date of inception.
Equity Indexed Life Insurance

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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